The Delhi High Court has rejected an application by the Enforcement Directorate seeking an interim status quo on properties attached in the National Herald money laundering investigation involving senior Congress leaders Sonia Gandhi and Rahul Gandhi.
Presiding over the matter, Justice Sachin Datta declined to grant interim relief to the central probe agency, observing that no formal case currently stands against the respondents following a lower court order. The judge stated that the court would determine the agency’s main petition against the trial court ruling during final arguments rather than issuing temporary directives. The proceedings have been listed for their next hearing in November.
Agency Warns Of Property Release Under Trial Court Ruling
Appearing for the Enforcement Directorate, Additional Solicitor General S V Raju pressed for an immediate freeze on the assets, arguing that the accused individuals were already approaching the appellate tribunal to seek the release of the attached properties by relying on the trial court’s decision. The law officer urged the court to preserve the status quo until the high court fully adjudicates the agency’s challenge.
The high court declined the submission, reiterating that interim orders would not be issued at this stage and that the legal challenge would be determined finally.
The underlying challenge stems from a December 16 decision by a trial court, which declined to take cognisance of the Enforcement Directorate’s chargesheet. The lower court concluded that initiating cognisance on the agency’s complaint was legally impermissible because the matter had not originated from a police First Information Report.
On December 22, 2025, the high court issued formal notices to Sonia Gandhi, Rahul Gandhi, and several other individuals and entities on the central agency’s main plea challenging the dismissal, as well as on its plea for a stay on the lower court order. Other parties issued notices in the case include Suman Dubey, Sam Pitroda, Sunil Bhandari, Young Indian, and Dotex Merchandise Private Limited.
Legal Dispute Over Private Complaints And Statutory Requirements
In its appeal before the high court, the Enforcement Directorate contended that the trial court dismissed its complaint on hyper-technical grounds despite the established presence of a scheduled offence and proceeds of crime. The agency argued that the legal framework makes no distinction between cases initiated by the police and those arising from private complaints, asserting that an investigation under the Prevention of Money Laundering Act can legitimately proceed on a private complaint.
The law officer highlighted that a magisterial court had already taken cognisance of the primary scheduled offence following a private complaint filed by Bharatiya Janata Party leader Subramanian Swamy. The agency contended that upholding the trial court’s rationale would effectively provide immunity to money launderers simply because an underlying offence was reported to a magistrate by an individual rather than through a police FIR.
The Gandhis have opposed the agency’s plea, describing the appeal as an abuse of the legal process. They maintained that the trial court’s refusal to take cognisance was sound, lawful, and entirely free from jurisdictional errors, perversity, or procedural illegality.
Allegations And Financial Transactions Under Investigation
The money laundering probe centers on allegations that senior Congress leadership orchestrated a fraudulent takeover of assets belonging to Associated Journals Limited, the publisher of the National Herald newspaper. Alongside the Gandhis, the agency has named late Congress leaders Motilal Vora and Oscar Fernandes, as well as Dubey, Pitroda, and the company Young Indian in its allegations of criminal conspiracy and laundering.
According to the agency, Associated Journals Limited owned immovable assets estimated at approximately Rs 2,000 crore. The agency alleged that Young Indian, a firm in which Sonia Gandhi and Rahul Gandhi collectively held a 76 per cent stake, unlawfully acquired the publisher’s assets through the transfer of a Rs 90 crore loan.
As part of its ongoing proceedings, the Enforcement Directorate has provisionally attached equity shares and immovable properties valued at approximately Rs 752 crore connected to Associated Journals Limited and associated entities.
